Impacts of heavy vehicle reform

Request for advice

I am writing to request advice from the Productivity Commission (PC) on the impacts of a heavy vehicle productivity reform package. This advice will support continued pro-competitive reform under National Competition Policy (NCP).

This reform package aims to increase transport productivity for all heavy vehicles and support the uptake of heavy zero emissions vehicles (HZEVs).

To support this work, I am requesting advice from the PC, pursuant to Parts 2 and 4 of the Productivity Commission Act 1998, in the form of analysis and modelling for the following reforms (with further detail in Attachment A):

  • Increasing heavy vehicle road access to reduce emissions and increase productivity.
  • Accelerating the establishment of a National Automated Access System to streamline road access decision making for all heavy vehicles.
  • Accelerating implementation of the National Heavy Vehicle Driver Competency Framework.
  • Removing administrative and regulatory barriers to improve the availability of HZEV charging infrastructure.
  • Reducing or removing curfews for HZEVs.

For each of these reforms, the PC should:

  • provide an assessment of the economic and revenue impacts, including expected:
    • impacts on GDP, GSP, dynamic efficiency and other measures of economic progress and national prosperity>
    • costs and benefits for Australian households, including:
      • estimated impacts on aggregate measures of incomes, prices and wages
      • distributional impacts, where possible, including by age, gender, income and education, and any other relevant demographic classification (including impacts on First Nations Australians) Tuesday, 30 September 2025
      • other impacts on consumers that may be difficult to quantify, such as improved quality of service or wellbeing, or greater choice.
    • impacts on relevant industries and sectors. To the extent possible, this should include estimated impacts on sectoral output, prices, productivity, employment and growth
    • net additional revenue accruing to the Commonwealth, state, territory and local governments.

The PC will consult as required, including with the Australian, state and territory and local governments in completing this advice. The advice should include an explanation of the methodology, assumptions and sensitivity analysis showing how results change under different assumptions.

The PC should provide an interim report, including initial modelling outcomes, to the Government by 31 March 2026 and a final report by 30 June 2026.

Yours sincerely

[signed]

The Hon Jim Chalmers MP

[Received 30 September 2025]

Attachment A – Further detail on the heavy vehicle productivity reform package

  • The Commonwealth is seeking to work with the states and territories to progress a package of heavy vehicle productivity reforms via a revitalised NCP agenda.
  • The road access reform package aims to increase transport productivity for all heavy vehicles and support the uptake of heavy zero-emissions vehicles (HZEVs).
  • The reforms are detailed below:

Increasing road access to reduce emissions and increase productivity

  • There are current restrictions on which roads heavy vehicles are allowed to operate on. This disadvantages HZEVs and high-productivity freight vehicles due to their additional weight, reducing their potential payload and productivity compared to their Internal Combustion Engine (ICE)-driven counterparts.
  • Actions to get more road freight carried by HZEVs and high-productivity freight vehicles would help reduce emissions and boost productivity as more payload can be carried in each journey. This could include increasing axle mass limits, expanding road access networks for certain vehicles, and targeted road infrastructure upgrades.

Accelerating the establishment of a National Automated Access System (NAAS)

  • Vehicles above general mass limits face restricted road access due to the damage they cause to roads or the ability of road assets (such as bridges) to withstand the weight of the vehicle. In these instances, operators may be required to apply for a road access permit, which is an administratively burdensome and a time-consuming process.
  • Accelerating establishment of the NAAS based on the Heavy Vehicle Access Management System (HVAMS) will boost supply chain productivity, optimise use of road networks, achieve ITMM’s commitment to reduce permits by 90%, and is a high priority for industry.
  • A NAAS based on the proven architecture of HVAMS will remove the need for most permits and provide instant decisions on network access, highly-tailored to individual truck combinations and loads.

Accelerating implementation of reforms to the National Heavy Vehicle Driver Competency Framework (NHVDCF)

  • Operating high productivity vehicles requires qualified drivers, who must hold the appropriate class of heavy vehicle (HV) licence. With driver shortages – and an ageing workforce nearing retirement – faster licence progression is a critical enabler to realising the productivity potential of high productivity vehicles (HPVs).
  • The NHVDCF reforms will address driver shortages by providing improved training and assessment outcomes and accelerate experience-based progression for drivers through HV licence classes

Reducing or removing curfews for HZEVs

  • Curfews on heavy vehicle movements restrict when certain heavy vehicles can use specific roads, often to minimise traffic noise particularly in residential areas.
  • As HZEVs are quieter than ICE heavy vehicles, a reduction or removal of curfews of HZEVs would allow them to operate during non-standard business hours when there is less congestion and freight transit times can be reduced.
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Removing regulatory barriers to improve the availability of charging infrastructure

  • The future of Australia’s HZEV fleet needs charging infrastructure that is optimised to reduce vehicle charging time during long trips.
  • Charge point operators face a complex regulatory environment and administrative challenges to install and operate charging infrastructure.
  • Publicly accessible HZEV charging infrastructure will support productivity by ensuring operators are competitive in a net zero economy.